Looking Past the Headlines

New revelations about an old scandal have pummeled shares of Siemens. But that's created an opportunity for investors.

IN AN ERA OF UPSTART GROWTH STOCKS, few seem as promising as 160-year-old German electronics and electrical engineering giant Siemens. By at least one estimate, the $113 billion (market value) firm could boost profits at a 25% annual clip in the next few years.

A quick look at the company's shares, which are up more than 230% over the past five years, could lead you to assume that those growth numbers are already priced into the stock. But that assumption would be wrong. At a recent $124, The Munich-based company's shares...